Traces from Dionisio Codama Sao Paulo, Brasil http;//aimore.org http://aimore.net
Britain’s Competition and Markets Authority (CMA) today outlined of its sweeping proposals that could force both Apple and Google to fundamentally alter how the pair operate their app stores and ecosystems in the UK.
The competition regulator also published a detailed roadmap of possible changes after it proposed to designate both Apple and Google with “strategic market status” under new digital competition laws. That designation would provide unprecedented powers to the CMA, allowing it to impose binding requirements on how Apple runs its mobile platform.
The CMA is looking to force Apple to allow third-party developers to steer users outside of the App Store for in-app purchases, putting a bit gouge in Apple’s profitable 30% commission model. Apple would also be required to conduct a fairer and more transparent app review process.
The CMA is also looking to force Apple to allow alternative browser engines other than WebKit and opening up the platform to third-party digital wallets and connected devices and accessories.
“Apple and Google’s mobile platforms hold an effective duopoly,” said CMA Chief Executive Sarah Cardell, who noted that 90-100% of UK mobile devices run on these platforms. The regulator estimates the UK app economy generates 1.5% of GDP and supports around 400,000 jobs.
As you might expect, Apple is pushing back against the proposal, warning that they “would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors.”
The CMA’s roadmap resembles enforcement actions that are already in place in European Union countries, as well as the United States, where a court ruling is forcing Apple to allow developers to include external payment links in their apps.
CMA will begin with app store changes later this year, and will then concentrate on browser engines and device interoperability in 2026. Some of the Authority’s measure will be under review, as it observes developments in the EU and U.S.
The regulatory agency is required to finalize its strategic market status designations by October. Stakeholders will be allowed to submit feedback on the proposed intervention roadmap until then.